Academic MBA Question:
Question: For Amit manufacturing company, the job work is executed by A Unit. The unit had an incomplete job as on 30th March 2019. The cost sheet on the same date reflects direct material and direct labour cost of Rs7 lacs and Rs 5 lacs, which have been incurred on the job till date.
Additionally, the firm incurred
following costs as on 31st March 2019
Direct material cost 30000
Direct labor cost 50000
Indirect labor cost 30000 As per firm’s policy, factory overhead is absorbed on the basis of 120% of direct labour cost. In the light of above mentioned information, calculate the value of Work in progress as on 31st March 2019.
Academic Assignment Answer: